Accumulate ICICI Bank - Emkay

Reco: ACCUMULATE
CMP: Rs 902
Target Price: Rs 1200

Another stable quarter

- ICICI Bank Q3FY12 NII at Rs27.1bn / PAT Rs17.3bn – much ahead of estimates. Muted growth in non-int inc compensated by stable operating expenses and lower provisioning

- Asset quality improves qoq. Gross slippages at Rs8.8bn offset against Rs11.6bn of recovery/up-grade and w/off. Restructured portfolio stands at Rs30.7bn (1.2% of loans)

- Loan growth aided by growth in SME + domestic corporate. Mgmt reiterated for stronger traction in retail segment in coming quarters. Reported NIM at 2.7% was up 9bps qoq

- Despite likely –ve surprises on NPA / restructuring front in Q4, we believe that valuations at 1.5x/1.3x FY12E/FY13E (banking ops) are reasonable. Maintain ACCUMULATE.

Source : Equity Bulls

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